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The undersea cable environment around the African continent continues to evolve. Proposed cables appear, disappear, merge. Steve Song from the Shuttleworth Foundation is keeping track.
Ownership of the SAT-3 cable by telecoms incumbents in Africa has reinforced their market positions, APC study finds.
Why affordable international bandwidth matters
International bandwidth is what connects Africa’s telephone and internet users to neighbouring countries and the rest of the world. It is delivered either by fibre optic cable (like the existing SAT3 cable) or via satellite. For higher volumes use, fibre provides a significantly cheaper way of carrying traffic than satellite, although the latter remains essential for connecting rural areas. Currently Africa has amongst the highest international bandwidth costs anywhere in the world. Although it varies, the international element of the cost to the consumer is significant proportion of the overall cost he or she pays. The same is true for institutional users like governments or for companies in the private sector.
Where competition has existed in Africa, prices have come down and service levels have increased. Falls in price have ensured that larger numbers of people have used the means of communication – whether mobile or e-mail – to improve their lives. Unfortunately the main international cable for the continent (SAT3) at present only has monopoly access and the terms of access for Africa’s newest planned cable (EASSy) are the subject of fierce debate.
International trade and the exchange of ideas are essential to a country’s success. Therefore the cost of international bandwidth poses a significant barrier to the ability of African countries to participate in world trade and to increase their capacity and skills. Without cheaper international bandwidth Africa runs the danger of being left behind in the global race.
Cheaper international bandwidth is crucial for a number of reasons, some of which are illustrated by these examples:
Several African countries (most notably South Africa) have sought to attract outsourced call centre work, anything from directory compilation to answering customer queries. In most cases, the cost of calling from Africa to the developed world is significantly higher than for other continents. Indeed, South African President Thabo Mbeki has complained that his country’s international call charges were too high to encourage this kind of business.
University students will make up Africa’s next generation of leadership. For those unable to get scholarships to study internationally, it is extremely important that they have access to the ideas and knowledge available in other countries. Few African universities have internet access for all students, and where some provision is available, cost remains a key issue for the institutions. Many research institutions are not linked to their counterparts in other African countries or to others elsewhere in the world.
Cheap phone and internet access allows African businesses better access to world markets. The existence of a modern communications infrastructure is a significant positive factor for international investors. So whether you’re in the continent wanting to do business with the rest of the world or contemplating investing in Africa as an emerging market, the existence of cheap voice and internet access is an essential pre-condition for economic development. Because Africa has so many other structural barriers to taking part in world trade, the existence of effective, cheap communications would send a message that the continent was serious about its future.
There are many areas of social development where cheap international access would give the continent’s professionals access to knowledge, expertise and involvement in global discussions. Doctors in Senegal have already used the internet to call on expertise from their colleagues in France. Teachers would be able to access classroom materials and schools partner more effectively with their developed world counterparts. The existence of effective teleconferencing would allow African professionals and civil society organisations to participate more effectively in international networks. All of this would deliver direct benefits to Africans, whether they are patients, pupils or simply users of government services.
Now read: Financing infrastructure
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